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An econometric estimation of the aggregate import demand function for Bangladesh: some further results

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  • Anisul Islam
  • M. Kabir Hassan

Abstract

This study empirically estimates some critical parameters of the aggregate import demand function for Bangladesh for Bangladesh using quarterly time series data and by applying the Johansen-Juselius multivariate cointegration technique. Cointegration results indicate that the import demand function is dominated by income and relative prices. The income elasticity is significantly positive and exceeds unity indicating that aggregate imports are to be considered as 'luxury' goods. The effect of the relative price variable is significantly negative but its elasticity coefficient is less than unity.

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  • Anisul Islam & M. Kabir Hassan, 2004. "An econometric estimation of the aggregate import demand function for Bangladesh: some further results," Applied Economics Letters, Taylor & Francis Journals, vol. 11(9), pages 575-580.
    • Handle: RePEc:taf:apeclt:v:11:y:2004:i:9:p:575-580
    DOI: 10.1080/1350485042000217990
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    Cited by:

    1. Nasir Iqbal & Ejaz Ghani & Musleh ud Din, 2014. "Pakistan’s Dependency on Imports and Regional Integration," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 19(Special E), pages 395-409, September.
    2. Yu Hsing & A. M. M. Jamal & Wen-jen Hsieh, 2009. "Application of the monetary policy function to output fluctuations in Bangladesh," Economics Bulletin, AccessEcon, vol. 29(3), pages 2113-2122.
    3. Mohammad Monjurul Hoque & Zulkornain Yusop, 2012. "Impacts of Trade Liberalization on Export Performance in Bangladesh: An Empirical Investigation," South Asia Economic Journal, Institute of Policy Studies of Sri Lanka, vol. 13(2), pages 207-239, September.
    4. Khatoon, Rabeya & Rahman, Mohammad Mahbubur, 2009. "Assessing the Existence of the J?Cure Effect in Bangladesh," Bangladesh Development Studies, Bangladesh Institute of Development Studies (BIDS), vol. 32(2), pages 79-100, June.
    5. Hoque, Mohammad Monjurul & Yusop, Zulkornain, 2010. "Impacts of trade liberalisation on aggregate import in Bangladesh: An ARDL Bounds test approach," Journal of Asian Economics, Elsevier, vol. 21(1), pages 37-52, February.
    6. Murad, S. M. Woahid, 2012. "Bilateral Export and Import Demand Functions of Bangladesh: A Cointegration Approach," Bangladesh Development Studies, Bangladesh Institute of Development Studies (BIDS), vol. 35(1), pages 43-60, March.
    7. Muhammad Shahid HASSAN* & Ayesha WAJID* & Qazi Muhammad IRFAN* & Muhammad Naveed TAHIR* & Noman ARSHED*, 2014. "Some Price And Non-Price Factors Affecting Imports In Pakistan," Pakistan Journal of Applied Economics, Applied Economics Research Centre, vol. 24(2), pages 159-177.

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